The Bundesliga side are keen to add the Brazil international to their ranks and have held talks with les Gones officials over a potential move.

Lyon president Jean-Michel Aulas recently denied there had been any contact from Schalke but a source close to the player has confirmed that negotiations were ongoing between the two clubs.

It is understood S04 have offered €7m for Bastos, with Lyon holding out for at least another million for the man they signed from Lille for around €18m in 2009.

However, reports that Bastos has already undergone a medical in Germany were denied by both clubs recently.Al Ain have also rebuffed rumours that the versatile Bastos had agreed to leave Stade de Gerland to join the Emirati side.